A doorstep loan, also called home credit or home-collected credit, is an unsecured loan that is commonly arranged and repaid through visits to your home. The personal service and small regular payments may feel convenient, but this type of borrowing is usually expensive. Compare the total amount repayable—not only the weekly payment—and check cheaper support and credit options first.
MoneyHelper says home credit commonly involves relatively small cash loans, often repaid weekly or fortnightly. An authorised lender must assess whether the repayments are affordable. Approval is never guaranteed, and a lender should not encourage you to hide expenses or borrow more to maintain existing payments.
Before dealing with anyone at your door: check the lender on the FCA Firm Checker. An authorised doorstep lender is not the same as a loan shark. Someone lending without the required authorisation may be operating illegally; our guide explains how to recognise and report a loan shark.
What is a doorstep loan?
A doorstep loan is a form of unsecured consumer credit in which a lender’s agent visits the borrower’s home, usually to collect regular repayments. It is also known as home credit, home-collected credit or doorstep lending.
The money may be provided in cash or by another agreed method. Repayments are often weekly, although arrangements vary. A customer might pay an agent at home or, if the lender offers it, arrange another payment method such as a bank payment.
The word “doorstep” describes how the service is delivered; it does not mean that an agent can arrive uninvited and pressure someone into a new loan. Discussions about new or additional borrowing in a customer’s home must be initiated by the customer in the circumstances set out by consumer-credit law and FCA rules.
Are doorstep loans still available in the UK?
Yes, some authorised lenders still offer doorstep loans in the UK, although availability depends on the provider and the area it serves. Do not rely on an old lender list, a familiar brand name or a “loans near me” directory: check the specific company and contact details on the FCA Register when you apply.
Money Trumpet does not offer or recommend a particular home-collected loan through this guide. The purpose of the article is to explain the product, costs, alternatives and consumer protections so that readers can assess any current offer more carefully.
How do doorstep loans work?
With a doorstep loan, you apply to a home-credit lender, the lender completes its checks, and an agent may visit to explain the agreement or collect repayments. You should receive pre-contract information showing the amount borrowed, the repayment schedule, the APR, charges and the total amount repayable before you commit.
| Stage | What normally happens | What you should check |
|---|---|---|
| Application | You provide information about your identity, income, spending and existing commitments | The company and its trading name appear on the FCA Register |
| Affordability assessment | The lender assesses creditworthiness, including whether repayments are affordable | The information is accurate and the proposed payment leaves enough for essential costs |
| Agreement | The lender provides the credit terms and repayment schedule | Amount of credit, APR, every charge, payment dates and total amount repayable |
| Repayment | Payments are collected at home or made by another accepted method | Each payment is recorded correctly and you receive or retain evidence |
| Early repayment or difficulty | You ask for a settlement figure, change payment method or request support | The lender explains any new cost, credit-file effect and revised end date in writing |
Never sign an agreement you have not had time to read. Keep the agreement, payment book, receipts, messages and the lender’s contact details together.
How much do doorstep loans cost?
Doorstep loans often cost substantially more than mainstream bank loans, overdrafts or many credit cards. MoneyHelper says home credit can involve interest charges as high as 300%, although the rate, term and total cost depend on the individual product.
APR is useful for comparing the annualised cost of credit, but the total amount repayable shows the pounds and pence you are due to pay if the agreement runs as planned. Check both figures alongside the repayment frequency and term.
The amount you can borrow is set by the individual lender after its checks; there is no universal doorstep-loan limit. MoneyHelper says home credit usually involves loans of up to £1,000, but current providers may set different minimums and maximums. Never increase the application simply because a larger amount is offered.
| Figure | Why it matters | Question to ask |
|---|---|---|
| Amount of credit | The money you actually receive | “How much will I receive or have available to spend?” |
| Weekly or fortnightly payment | Shows the regular commitment | “Can I still pay rent, energy, food and travel in a difficult week?” |
| Number of payments | Reveals how long the commitment lasts | “What is the final scheduled payment date?” |
| APR | Helps compare the annualised cost with other credit | “Is this fixed or could any part of the cost change?” |
| Fees and charges | Can increase the cost beyond interest | “Are there arrangement, late or other charges?” |
| Total amount repayable | Shows the scheduled overall cost | “Exactly how much will I repay if every payment is made on time?” |
Do not assume that the payday-loan price cap applies to a home-credit agreement. The FCA’s definition of high-cost short-term credit excludes a home credit loan agreement from that particular cap. The lender must still be authorised and comply with the rules that apply to its product, including affordability and fair-treatment requirements.
What are the possible advantages of doorstep loans?
The possible advantages are personal contact, small regular payments and access for people who find online or branch services difficult. These features can make the payment process easier to understand or manage, but they do not make an expensive or unaffordable agreement suitable.
Potential benefits include:
- a face-to-face explanation of the agreement;
- regular payments that align with weekly income;
- the option to handle payments without online banking;
- an unsecured agreement, so the loan is not directly secured against your home; and
- the ability to speak to an agent about a payment problem.
Treat each feature as something to verify, not a promise. Ask whether home collection is guaranteed, whether another payment method is available and what happens if the regular agent is absent.
What are the disadvantages of doorstep loans?
The main disadvantages are high cost, frequent repayments, reduced privacy and the risk that repeat borrowing turns a short-term problem into long-running debt. A small weekly figure can disguise a large total cost when it is multiplied across many weeks.
| Possible advantage | Related risk or limitation |
|---|---|
| An agent visits your home | Visits may feel intrusive, especially if money problems are discussed where other people can hear |
| Small weekly payments | Frequent payments can be hard to maintain when income or bills vary |
| Cash may be available for a small expense | High interest can make the expense much more costly overall |
| A familiar agent provides personal contact | Familiarity can make it harder to refuse a top-up or challenge an error |
| Some lenders consider applicants with imperfect credit | Approval still requires checks, and borrowing may worsen an already stretched budget |
| A top-up can appear to solve a new shortfall | Refinancing may extend the debt and increase the overall cost |
FCA research into home-collected credit found harm associated with repeat borrowing and refinancing. If a lender offers a top-up, ask for a clear comparison between keeping the current loan, taking a separate new loan and refinancing the existing balance. Never judge the options from the new weekly payment alone.
Are doorstep loans safe and legal?
Doorstep lending is legal when the lender has the required FCA authorisation and follows consumer-credit rules. Check the business on the FCA Register using the exact company or trading name, telephone number and website details you were given.
An FCA listing is an essential check, but it is not a guarantee that a particular loan is affordable or suitable. Scammers sometimes copy the name or registration details of a genuine firm, so use the contact details shown by the FCA rather than numbers supplied in an unexpected message.
Warning signs include:
- the lender cannot be found on the FCA Register;
- an unexpected visitor offers a new loan without your prior request;
- there is no written agreement or clear total amount repayable;
- the person keeps your bank card, passport or other security;
- threats, intimidation or violence are used;
- extra charges are added without explanation; or
- you are told to borrow again to repay the first loan.
If you suspect illegal lending, do not confront the lender. GOV.UK lists confidential reporting routes for England, Wales, Scotland and Northern Ireland on its Report a loan shark page.
Can a doorstep lender call at your home without permission?
A home-credit lender cannot simply cold call at your home to sell you a loan. The FCA explains that a discussion about new borrowing or refinancing in the borrower’s home must be initiated by the borrower, subject to the specific rules governing the visit.
A scheduled collection visit is different from an unsolicited sales call. If you are uncomfortable with home collection, ask whether the lender accepts bank payments or another method. Do not allow anyone into your home unless you want to, and never feel pressured to make an immediate borrowing decision.
If an account is in arrears, FCA debt-collection rules require appropriate conduct. A visiting representative must not act threateningly, enter without consent or an appropriate court order, or refuse to leave when reasonably asked. An ordinary lender’s agent or debt collector is not a bailiff and cannot simply take possessions.
Do doorstep lenders carry out credit and affordability checks?
An authorised lender must make a reasonable assessment of creditworthiness, including the risk that repayments could adversely affect your financial situation. The checks used can vary and may include income, expenditure, existing debts, payment history and credit-reference information.
“Loans with no credit check” should be treated with caution. A lender might advertise that it considers poor credit histories or uses different data, but that does not remove its responsibility to assess the application. Do not alter income or spending figures to obtain approval.
Who can apply for a doorstep loan?
Eligibility varies by lender, but an applicant will normally need to meet age, UK residence, identity, local service-area and affordability requirements. A provider may consider benefit income or a less-than-perfect credit history, but neither guarantees acceptance.
Ask whether checking eligibility uses a soft credit search or whether applying triggers a hard credit search. A hard search can leave a record on your credit file. The provider should explain its process before you submit a full loan application.
Before applying, use a realistic household budget that includes irregular essentials as monthly amounts. If the proposed payment would require you to miss rent, Council Tax, energy, food or another important commitment, the loan is not affordable merely because the first few instalments can be paid.
Are doorstep loans the same as payday loans?
No. Both can be expensive forms of unsecured credit, but a doorstep loan is defined by home arrangement or collection and commonly uses regular weekly or fortnightly instalments. A payday loan is normally repaid online or electronically and may fall within the FCA’s separate high-cost short-term credit regime.
The legal category matters because different product rules can apply. Always compare the actual agreement, APR, charges, term and total amount repayable instead of assuming that every high-cost loan has the same protections or cap.
For a broader comparison, read our guide to alternatives to payday loans.
What are the alternatives to a doorstep loan?
Alternatives can include help that does not involve borrowing, an interest-free Budgeting Advance or Budgeting Loan for eligible benefit claimants, a credit union, a community lender, employer support or a carefully documented family loan. Eligibility and cost vary, so check the current terms before applying.
| Option | When it may help | Important checks |
|---|---|---|
| Grant, local welfare help or creditor support | The money is needed for food, energy, housing or another essential | Ask the council, supplier or relevant charity what non-repayable help is available |
| Budgeting Advance or Budgeting Loan | You receive qualifying benefits and need help with an eligible essential cost | Check eligibility, maximum amount and how deductions affect future benefit payments |
| Credit union | You meet its membership rules and need a relatively small loan | Compare APR, total repayable, savings requirements and approval criteria |
| Community Development Finance Institution | Mainstream credit is unavailable but a responsible community lender may help | Rates can still be high; compare the total cost with all other options |
| Employer salary advance or hardship scheme | Your employer offers a regulated or supported arrangement | Understand fees and how reduced future pay affects the next month’s budget |
| Family or friends | Both sides can afford the arrangement and the relationship can tolerate it | Put the amount, payment dates and what happens after a missed payment in writing |
| Delay the purchase and save | The expense is not urgent | Set a realistic target and keep the savings separate from day-to-day money |
MoneyHelper reports that credit-union borrowing is usually cheaper than high-cost doorstep or payday lending. In England, Scotland and Wales, credit unions can charge no more than 3% a month, equivalent to 42.6% APR; the cap in Northern Ireland is lower. Membership and lending criteria still apply.
If the need is caused by a continuing budget shortfall, another loan may delay rather than solve the problem. Check benefits and entitlements, speak to essential-service providers and use free debt advice before adding a repayment.
What should you check before taking a doorstep loan?
Before taking a doorstep loan, verify the lender, calculate the full cost, test the repayment against a difficult month and compare non-credit support and cheaper borrowing. Take time away from the agent if you need it.
Use this checklist:
- Check the exact lender and contact details on the FCA Register.
- Write down why you need the money and whether the cost can be reduced or delayed.
- Check grants, benefit advances, credit unions and creditor support.
- Record the amount borrowed, payment amount, number of payments, APR, fees and total repayable.
- Test the payment after rent or mortgage, Council Tax, energy, food, travel and existing debts.
- Ask whether the payment or collection method can change.
- Read the early-repayment and withdrawal terms.
- Ask what happens after a missed payment and how information may be reported to credit-reference agencies.
- Refuse pressure to refinance or take a top-up.
- Keep the agreement and a record of every payment.
Can you cancel or repay a doorstep loan early?
The credit agreement should explain a 14-day right to withdraw and your early-repayment rights. MoneyHelper says home-credit borrowers can repay in full or in part and may be entitled to a rebate of future interest, although the rebate might not remove every future charge.
Ask the lender for the exact settlement figure before making a full repayment. For a partial overpayment, ask whether it will shorten the term, reduce later instalments or do both. Keep written confirmation when the balance reaches zero.
What should you do if you cannot afford the repayments?
Contact the lender as soon as you expect to miss a payment, explain the change in circumstances and offer only what your budget shows you can afford. Do not accept a top-up or refinancing proposal until you understand the new total cost and have considered free advice.
Ask the lender to confirm:
- the temporary or revised payment;
- whether interest or charges continue;
- the effect on the balance and repayment end date;
- how the arrangement will be reported to credit-reference agencies; and
- whether home visits will continue.
If several debts or essential bills are affected, a whole-budget review is safer than making a promise to the first collector who calls. MoneyHelper’s Debt Advice Locator can help you find free, confidential advice. Our guides also explain how to deal with creditors and how to build an affordable debt repayment plan.
How do you complain about a doorstep lender?
Complain to the lender first and explain what you think went wrong, the effect it had and what outcome you want. Include copies of relevant agreements, payment records and messages, but keep the originals.
Complaints commonly involve unaffordable lending, an incorrect balance, a payment not being recorded, poor support after circumstances changed, an intimidating visit or disclosure of private information. The Financial Ombudsman Service says that if the firm has not sent a final response within eight weeks, or you are unhappy with its final response, you can usually ask the Ombudsman to consider the complaint.
The Financial Ombudsman Service home-credit guide explains the process and the evidence it may review. Time limits apply, so do not put the complaint aside indefinitely.
Frequently asked questions
Can you get a doorstep loan with bad credit?
Some home-credit lenders consider people with imperfect credit histories, but approval is not guaranteed. An authorised lender must still assess creditworthiness and affordability. A poor score does not make an expensive repayment affordable, so compare the total cost and alternatives first.
Can you get a doorstep loan if you are on benefits?
Some lenders may count certain benefit income, but their eligibility and affordability checks differ. Being on benefits does not guarantee approval, and a regular payment can still be unaffordable after housing, energy, food, travel and care costs. Check interest-free benefit advances and other support before high-cost credit.
Are there doorstep loans with no credit check?
Do not rely on a “no credit check” claim. The lender must complete a proportionate creditworthiness assessment, although it may use different information or processes from a mainstream bank. Check FCA authorisation and never pay an upfront fee to an unexpected contact promising guaranteed approval.
Can a doorstep lender enter your home?
Not without your consent or an appropriate court order. You can speak at the door, ask for identification, rearrange a suitable appointment or request that a representative leave. An ordinary lender’s agent is not entitled to take belongings.
What if the agent does not record my payment?
Keep your payment book and receipts, write down the date, amount and agent’s name, and contact the lender promptly. If it is not corrected, make a formal written complaint. The Financial Ombudsman may examine payment records and evidence from both sides.
Will missing a doorstep-loan payment affect my credit file?
It can. Reporting practices and timing vary, but missed payments or arrears may be shared with credit-reference agencies and can affect future applications. Ask the lender how a temporary arrangement will be recorded before agreeing to it.
Can a doorstep lender offer me a top-up loan?
A lender may discuss additional borrowing only within the applicable rules, including restrictions intended to keep discussions in the home customer-led. A top-up can extend the repayment period and increase the total cost. Request a written comparison and consider free debt advice before refinancing.
How quickly can you get a doorstep loan?
The time depends on the provider, its affordability and identity checks, and whether a local agent needs to arrange a visit. Do not assume “same-day” or “urgent” wording guarantees approval or payment. Avoid any unexpected contact demanding an upfront fee to release a loan.
How do you find a doorstep lender near you?
Search results and local advertising can identify possible providers, but verify each one through the FCA Firm Checker before giving personal or financial information. Match the website and telephone details, confirm the service area, and compare the APR and total repayable with credit unions and other alternatives.
Are doorstep lenders loan sharks?
An authorised doorstep lender is not a loan shark. A loan shark lends illegally without the required authorisation and may use intimidation or unlawful collection methods. Check the FCA Register and report suspected illegal lending through the official service for your UK nation.
Should I take out a doorstep loan?
Consider one only after checking non-credit help and less expensive borrowing, and only if the full repayment is affordable without sacrificing essential bills. Convenience at home does not outweigh an excessive cost or a budget shortfall. If borrowing is needed for essentials every month, seek free debt advice instead.
Sources and review information
This guide was newly researched and written for Money Trumpet and last reviewed on 13 September 2026. Principal sources were MoneyHelper’s guidance on home credit and doorstep lending, credit unions and Budgeting Loans and Advances; Citizens Advice guidance on home credit; StepChange guidance on doorstep-loan debt; the FCA’s high-cost credit review, rules on financial promotions in the home and debt-collection visits; GOV.UK’s loan-shark reporting routes; and the Financial Ombudsman Service’s home-credit complaints guidance.
Money Trumpet is a credit broker, not a lender. This article provides general information rather than a recommendation to use doorstep credit or personalised financial, debt or legal advice. Product terms, eligibility and support vary. Check current information with the provider and obtain free independent help if repayments or essential bills are unaffordable.